General Terms & Conditions

(A)General Terms and Conditions

Our main business is to provide institutional, high net worth and retail customers with multi-asset and multi-market derivative dealing capability through CFDs and financial spread betting products combined with integrated trading platforms and solutions. This document sets out the terms and conditions governing the use of trading services offered by us in relation to making financial spread bets and trading CFDs. This business carries a high level of risk and can result in losses as well as gains. This business and the services we provide are not suitable for everyone and they are designed for clients who are knowledgeable and experienced in the financial services market and in the types of transactions described in these terms and conditions.

These terms and conditions contain certain technical terms which are used in relation to trading, investments and the stock markets. You should be confident that you understand what all of these terms mean before you start trading with us.

You should not trade unless you understand the nature of this business, the characteristics of the Products you intend to trade and the extent of your exposure to risk. You should also be satisfied that the Products and Services being provided under these terms and conditions are suitable for you in the light of your circumstances and financial position.

A description of investments and an explanation of the risks associated with the types of the Products offered by us is set out in the Risk Warning that has been provided to you and you should ensure you fully understand these risks before entering into these terms and conditions. You should read this document and the Risk Warning, the Order Execution Policy, the Privacy Statement and any other documents that we have supplied to you or will supply to you in the future.

If you are not experienced in the types of transactions described in these terms and conditions, or if you are unsure about any of the terms, you should seek advice from an independent financial adviser.

1Information

1.1ETX Capital is a trading name of Monecor (London) Limited. In this Agreement “ETX Capital”, “we”, “us” “our”, “ours” and “ourselves” refer to Monecor (London) Limited, as appropriate. Monecor (London) Limited is a company incorporated in England and Wales with company number 00851820 and is authorised and regulated by the FSA with registration number 124721.

1.2Unless you are notified otherwise by us, our contact details are:

Address: Beaufort House
15 St. Botolph Street
London EC3A 7DT
Email: customerservice@etxcapital.com
Telephone number: +44(0)20 7392 1494

2The Agreement

2.1The agreement between us relating to your trading with us consists of:

(a)the application form;

(b)the terms and conditions set out in this document; and

(c)any other document we may provide to you and expressly state that it forms part of the agreement between us,

together with any additional document published by us from time to time that further explains or regulates trading (“this Agreement”).

2.2These terms and conditions govern the relationship between us and our client (”you”, “your” or “yourself”, as appropriate) with respect to trading. Please read this document carefully and in particular we draw your attention to clauses 3.9 (Your Account), 9 (Trading), 13 (Margin) and 21 (Indemnity and Liability).

2.3You agree to be legally bound by this Agreement if you: (i) check the ‘Do you agree to our Terms & Conditions?’ box on our Website, or (ii) sign the account opening documentation or (iii) trade on your account.

2.4From time to time we may offer new Services or Products to you (where such Services or Products are permitted to be provided to you pursuant to applicable law) and any such additional Services or Products will, in the absence of a separate agreement between you and us, be subject to this Agreement as may be amended from time to time.

2.5If there is any conflict between this Agreement and the Financial Services and Markets Act 2000 (the “Act”) or Applicable Regulations, the Act and Applicable Regulations will prevail. Nothing in this Agreement will exclude or restrict any duty or liability owed by us to you under the Act or Applicable Regulations.

2.6Certain words and expressions appearing in this Agreement have been given particular meanings. Where capitalised words are not defined in the relevant clause, the definitions set out in clause 32 (Interpretation) shall apply.

2.7This Agreement represents the entire agreement between you and us and supersedes any previous agreement that may exist in respect of trading. Representations and warranties are personal statements, assurances or undertakings given by you to us on which we rely when we deal with you. You agree that all other terms, conditions, representations, warranties and other statements which would otherwise be implied (by law or otherwise) will not form part of this Agreement and you acknowledge that in entering into this Agreement and in effecting each Trade you place no reliance on any representation, warranty or other statement other than as set out in this Agreement.

2.8This Agreement will be effective on the earlier of (a) the day on which we acknowledge acceptance of your application or (b) the day on which we accept your first deposit or the first trade on your account.

3Your Account

3.1We must accept you as a client before you are entitled to use the Services.

3.2You must provide all information and evidence specified by us for the purposes of verifying your identity. If we are not satisfied with the information provided, we may request additional information. We have no obligation to process further or accept your application until verification procedures have been completed to our satisfaction.

3.3We may obtain personal data from a third party agent for the purposes of processing your application including the results of checks with credit reference and fraud prevention agencies (who may keep a record of the search) and other financial organisations.

3.4The FSA Rules require that we obtain information about your relevant investment knowledge and experience in order to ascertain if our Products and Services are appropriate for you before we open an account for you. We are not obliged to determine if CFD trading or Financial Spread Betting is suitable for you.

3.5We may refuse your application for any reason and we are not obliged to provide you with any reason for doing so.

3.6After accepting your application we will open your account. We may open different types of accounts depending on the nature of your trading (example: you may be invited by us to trade mainly online or alternatively over the telephone) and the purpose of the account (e.g. SIPP accounts).

3.7If you open an account with one or more other persons (a “Joint Account”), you shall be jointly and severally liable for Losses, fees or charges arising on that Joint Account. Among other things, this means that any monies owed on the Joint Account shall be payable in full by you or any one of the other Joint Account holders and we will have no obligation to collect from any holder. Additionally, we may (unless we have expressly agreed otherwise in writing) take instructions to trade from and/or pay any portion of the balance to, you or another holder of the Joint Account without prior notice to you and we may give any notices or communications to either you or another holder of the Joint Account. Upon the death of a holder of the Joint Account we may provide notices to and take instructions from their survivor(s).

3.8Unless we agree otherwise, all accounts you open with us, including any Joint Accounts, will be linked accounts, which means that each account that is held with us in your name alone or as a Joint Account holder will be linked with all the other accounts in your name solely or jointly (“Linked Accounts”). We may, at our sole discretion, aggregate your Linked Accounts for the purpose of calculating your Maintenance Margin or otherwise as specified in this Agreement; however, we are not obligated to do so. Cash available on one account may be transferred to satisfy a Margin Call but it remains your responsibility to ensure that at all times sufficient funds are in each account to cover the Margin requirements of your trading in that account. See also our rights of set-off in clauses 5.14 (Other Charges) and 14.2 (Netting Positions).

3.9You must keep your password secure and confidential. You acknowledge and agree that we can rely on your username/account number and password to identify you and agree that you will not disclose these details to any person who is not duly authorised by you. At no time will our employees ask you for your password, and under no circumstances should you divulge it. If you become aware or suspect that your password has been ascertained by a third party, you must inform us immediately. We accept no responsibility for any unauthorised use of your account and/or your password unless as a result of our negligence, wilful default or fraud. We accept no responsibility for passwords and usernames you store on your personal computing and mobile devices.

Inactive or Dormant Accounts

3.10We consider a trading account to be dormant or inactive when there have been no open Trades on the account on a trading day. We may deactivate your account if it has been has been dormant or inactive for a period of ninety (90) days or more. Where reasonably practicable we will give you advance notice (by email) of this deactivation but this may not always be possible and/or practical. In the event you receive a notice of pending deactivation or your account has been deactivated without you receiving notice and you wish it to remain active or be reactivated, please contact our support team by email at the following address: customerservice@etxcapital.com.

4Basis of Trading

4.1We are the counterparty to all Trades executed using the Services. All Trades are on a principal-to-principal basis (we will not be entering into Trades as your agent and you are not permitted to enter into any trades as the agent of any other person). They are performed by us on the receipt of instructions from you and on an ‘execution-only’ basis. We are under no obligation to satisfy ourselves as to the suitability of any Trade, to monitor or advise upon its performance or, subject to FSA Rules, to make Margin Calls or to close out Trades.

4.2Any information supplied by or on our behalf should not (and will not be deemed to) be taken to constitute advice to you on the suitability, risks, merits or demerits of any specific Trade. We do not advise on the merits of particular transactions or their tax consequences.

4.3Upon checking the ‘Do you agree to our Terms & Conditions?’ box on our Website or otherwise submitting the account opening documentation, and each time you open or close out a Trade or place an Order (see also your warranties at clause 17 (Market Abuse)), you represent and warrant on a continuing basis to us, that such representation and warranty shall survive the completion of any Trade, that:

(a)you enter into this Agreement and any Trades pursuant to it on your own behalf as principal and not as agent (or trustee) for any other party;

(b)no Act of Insolvency has occurred in relation to you;

(c)you have all requisite legal, corporate and/or regulatory authority to enter into this Agreement and any Trades made pursuant to this Agreement and any person affirming acceptance of this Agreement on your behalf has been and is duly authorised to do so;

(d)if an individual, you are 18 years of age or older;

(e)all information you supply to us during the application process and otherwise from time to time is complete, true, current and accurate;

(f)you are not contravening any legislation in the country from which you are placing your Trades;

(g)in making any Order you have been solely responsible for making your own independent appraisal and investigations into the risks of a Trade; and

(h)you have sufficient knowledge, market sophistication and experience, or have received sufficient professional advice in order to enable you, to make your own evaluation of the merits and risks of any Trade.

4.4The following documents, which have been provided to you, are our standard terms upon which we intend to rely. For your own benefit and protection you should read these terms carefully before signing them. If you do not understand any point raised in any of the documents please ask for further information:

(a)the Risk Warning;

(b)the Order Execution Policy;

(c)the Privacy Statement; and

(d)the Conflicts of Interest Policy.

4.5Whether or not you and we have entered into this Agreement by distance means, you are not entitled to cancel this Agreement; however, you may terminate this Agreement in accordance with clause 31 (Termination).

4.6You may be categorised as a Retail Client, Professional Client or an Eligible Counterparty. If we categorise you as a Professional Client or Eligible Counterparty you may lose the protection of certain FSA Rules, which we will inform you of. In certain circumstances we may wish to re-categorise you and in that event will explain clearly why we are doing this and the effect this may have your rights.

4.7We will not make any payment or accept any instructions (or act on them), if such instructions do not contain information that we reasonably require or if such payment or instructions may breach any Applicable Regulation or our internal procedures.

4.8Your trading will not create any rights of ownership or otherwise in any Underlying Market. We will not transfer any Underlying Market or any rights in it to you.

4.9It is your responsibility to ensure that any Trades you place from outside the United Kingdom do not breach any overseas regulations that may be applicable to you.

5Our Charges

5.1When you Trade with us you will be charged a commission or, with some Products, a Bid Offer Spread. The commission or Bid Offer Spread that will be charged depends on the circumstances of each Trade. Details of the commissions and the relevant Bid Offer Spread can be found on our Website or by request from customerservice@etxcapital.com.

5.2Please be aware that we may apply dividend or other adjustments to your Trade as set out in clause 16.5 (Corporate Actions, Dividends and other Situations).

5.3Trades that are held after the close of the relevant Underlying Market are generally subject to a funding charge or may be subject to a refund as appropriate which is incurred on each day that the relevant Trade is open and is levied as part of our end-of-day process. For markets other than FX, the charge or refund is calculated based on the total equivalent market value of each Trade held overnight and we will then charge or pay interest on this market value for each day the Trade is held open overnight. We will charge the Relevant Funding Rate for Long Trades and will pay the Relevant Funding Rate for Short Trades. There will be a financing charge on FX Trades remaining open at 20:00 on any trading day that is made up of an administration charge and the relevant Tom Next (Tomorrow Next) charge we are charged by our liquidity provider. For details on FX trading charges please see the FX Dealing Guide available on our Website. For details of specific funding rates please see the relevant Market Information Sheets that are available on our Website.

5.4We may from time to time share a percentage of this commission, Bid Offer Spread or funding with third parties who have introduced you to us. Details of any sharing arrangements that may apply to your account are available on request.

5.5When you open a Short Trade with us, we reserve the right to pass on to you any borrowing charges incurred by us plus a reasonable mark-up when hedging our exposure to you under that Short Trade. If you do not pay any such charges, or if we are (or become) unable to borrow the relevant Underlying Market (and we give you notice to that effect), we may, at our absolute discretion, take one or more of the following steps:

(a)close your Short Trade at such price as we reasonably believe to be appropriate; or

(b)increase your Margin Requirement.

You acknowledge and accept that these actions may result in you incurring a loss on the Short Trade and that you fully indemnify us against any fine, penalty, liability or other similar charge imposed on us for any reason by any Exchange, market maker, broker, agent or regulatory authority that relates in any way to opening or closing your Short Trade or any related transaction by us to hedge your Short Trade.

5.6An Underlying Market may either not be borrowable from the outset or our brokers or agents may recall the Underlying Market that we borrowed in order to hedge our exposure to your Short Trade. For the avoidance of doubt, your indemnity of us, as set out in clause 5.5 above, extends to any such stock recall or “buy-in” costs imposed by any Exchange, market maker, broker, agent or central clearing party in relation to your Short Trade.

Currency Conversion

5.7If you deposit money to your account or make Trades in a currency other than your Base Currency you should note the following:

(a)If you make a Trade in a currency other than your Base Currency it is possible to realise a profit or loss in that currency. As a result you may find that you have multiple balances in different currencies.

(b)The realised profits or losses from each Trade may be converted to your Base Currency and posted to your account in that Base Currency. We may also convert any non-Base Currency adjustments or charges to your Base Currency before such adjustments/charges are booked on your account, and we may convert any money received from you in a non-Base Currency into your Base Currency.

(c)All conversions made in accordance with this clause 5.7 will be made at an exchange rate within +/-0.5% of the prevailing Spot Price at the time of the conversion.

5.8If you have requested to opt-out and we have agreed that sub-clause 5.7(b) does not apply to one or more of your accounts we may, when we consider it reasonably necessary or when requested by you, convert into your Base Currency positive or negative trading balances and/or money standing to your credit in a non-Base Currency.

5.9From time to time (example: in a monthly statement), we may provide information to you which presents your multicurrency balances in the equivalent value of your Base Currency, using the rates prevailing at the time the information is produced. However you should note that the balances have not been physically converted and that the presentation of the information in your Base Currency is for your information only.

Other Charges

5.10We may charge you when processing a deposit or withdrawal of funds (example: when using a credit card). Details relating to such charges can be obtained by contacting customerservice@etxcapital.com. Your bank or another relevant third party may levy additional charges in connection with the deposit and/or withdrawal of funds. Any such third party charges will be borne by you.

5.11You acknowledge that other taxes or costs may exist that are not paid through, or imposed by, us. You are responsible for any such additional taxes or costs.

5.12There may also be circumstances where we pass on additional charges (examples: borrowing costs or stamp duty or other taxes) which we might incur when hedging your Trade in an Underlying Market in a non-UK security.

5.13We reserve the right to charge interest, accrued on a daily basis, at a rate of 8% above the prevailing base rate of The Bank of Scotland plc (or other financial institution selected by us in our absolute discretion) in respect of any debit balance, unpaid Margin or other sums overdue to us under this Agreement.

5.14Any sums due to us in accordance with the terms of this Agreement may be set-off (deducted) from your account without further notice to you. The right of set-off means that we can combine an account that is in debit with another that is in credit, in effect using funds from one account to pay your debt in another account. Where practicable we will give you advance notice of our intention to exercise our right of set-off.

6Your Money

6.1If you have been categorised as a Retail Client (or we have agreed to segregate your funds) the following shall apply:

(a)When you transfer money to us or money is paid to us on your behalf or is credited by us to your account, such money will be held in a segregated client money bank account at one or more approved financial institutions in accordance with the Client Money Rules.

(b)We may hold client money in a client money bank account located outside the EEA. The legal and regulatory regime applying to any such bank will be different from that of the EEA and in the event of the insolvency or any other equivalent failure of that bank, your money may be treated differently from the treatment which would apply if the money was held with a bank in the EEA.

(c)We will take reasonable care in the selection of any third party holding money under clauses (a) and (b). We shall not be liable for the solvency, acts or omissions of any bank or other third party holding money under clauses (a) or (b), except as a result of our negligence, fraud or wilful default.

(d)On each Business Day (or more frequently) we will carry out reconciliations between the amounts required to be held in the client money bank account and the money that is not required to be segregated as client money and we will make any required transfer to or from the client money bank account.

(e)You agree that we may discontinue treating any money held on your behalf as client money and release such money from the client money bank account if you have not traded in the previous six (6) years and we have not been able to contact you after making reasonable efforts. Any such money will remain owing to you and we undertake to retain records of all such amounts.

6.2If you have been categorised as a Professional Client or an Eligible Counterparty, the following shall apply:

(a)When you transfer money to us or money is paid to us on your behalf or is credited by us to your account, you acknowledge and agree that the full ownership of the money is transferred to us for the purpose of covering your obligations as provided in this Agreement. Accordingly, the Client Money Rules will not apply and the money will not be segregated from money held in our account(s) and may be used in the course of our business. In the event of our insolvency, you will rank as general creditor in respect of such money. We will not be liable for the solvency, acts or omissions of any bank or other third party holding your money.

(b)Money transferred to us will be recorded by us as a cash repayment obligation owed by us to you. On your request, we will transfer an equivalent amount of money back to you where, in our discretion, we consider that the amount of money you have transferred to us is more than is necessary to cover your obligations to us. In determining the amount of collateral and the amounts of cash margin, your obligations, and our obligations to you, we may apply such methodology (including judgments as to the future movement of markets and values) as we consider appropriate, consistent with Applicable Regulations.

6.3You acknowledge and agree that you waive any entitlement (under the client money rules or otherwise) to receive interest on any money that we hold for you.

Payment and Withdrawal of Funds

6.4We may refuse to accept payment by a particular method and if so we may require you to use alternative methods of payment.

6.5We do not accept cash or payments from, or make any payments to, third parties or other client accounts unless agreed in advance. Any such agreement will be at our discretion and under such terms as we may require from time to time. Funds deposited by way of transfer of monies between client accounts can only be carried out, with all due care, after signed written authority has been received from the paying client.

6.6We will allow five (5) working days to clear funds deposited by cheque drawn on a UK bank account. We, in our sole discretion, may allow a longer period for cheques drawn on a non-UK bank account.

6.7The lesser of (i) your Cash Balance, (ii) your Liquidation Value, or (iii) Trade Funds Available, will be paid to you according to your instructions, unless we are prevented from doing so by law. Please note that in some circumstances it may be necessary for you to provided additional documentation to prove the origin of your deposit and your ownership of the destination bank account or card in order to protect you and us against fraud. As stated in clause 5.14 (Other Charges) above, any sums due to us in accordance with the terms of this Agreement may be set-off from your account. As such, any payment made under this clause will be subject to the prior deduction of any sums due to us in accordance with the terms of this Agreement.

6.8To make a withdrawal, you must specify the method of withdrawal either by written request or email or from those displayed on the 'Withdraw Funds' page on our Website. Funds may be withdrawn via repayment to debit cards, credit cards, wire transfer or by cheque sent by post. Where your selected method of repayment is not available we will notify you and agree the method in which your funds will be returned to you. Different charges may apply; please contact customerservice@etxcapital.com for up-to-date information on the applicable charges.

6.9We will make reasonable efforts to give effect to your withdrawal instructions. Please note that while the funds remain in your account they may impact upon your Maintenance Margin. You should ensure that you have sufficient funds in your account to meet any Margin requirements.

6.10If any regulatory body has queried transactions on your account for whatever reason, we reserve the right to suspend your account pending receipt of guidance or instructions from that body or other resolution.

6.11There may be exceptional circumstances where we are restricted by the authorities, or by Underlying Market conditions or by our hedging partners from making a payment of money to you until either the restriction is removed or the Underlying Market conditions are met or our hedging partner is able to make the payment to us. We are not required to provide you with reasons for the restriction. We undertake to release your funds as soon as we are able to do so in accordance with this Agreement.

7Electronic Services

7.1Where an Electronic Service involves you placing Orders with or giving instructions which are to be carried out by us then unless we agree otherwise you acknowledge that:

(a)where an instruction has been given it shall be irrevocable and we shall be under no obligation to take any steps to reverse it unless so required by law;

(b)an Order will not be effective until you receive an onscreen confirmation of receipt thereof from us; and

(c)there are inherent risks in using electronic communications such that the systems may fail or they may not be secure and communications may be intercepted by unauthorized parties or may not reach their intended destination or may do so much later than intended for reasons outside our control.

7.2We will use commercially reasonable efforts to ensure that our Electronic Service can be accessed by you for use in accordance with this Agreement. Subject thereto we give no undertaking, representation or warranty that any Electronic Service will be available or accessible.

7.3You understand that there is no trading system free from the risk of loss. We do not imply or guarantee that you will make a profit. You should not trade with us unless you understand the trading system you are using and the extent of your exposure to risk. If you are unsure about your use of a trading system you should not trade. If you require any further information in relation to one of our trading systems please let us know immediately.

7.4We may, at our discretion, suspend any Electronic Service with or without notice for any reason, including but not limited to carrying out maintenance, repair or development. We will not be liable if access to any Electronic Service is prevented or interrupted or otherwise unavailable due to a Force Majeure Event and/or because of any suspension pursuant to this Agreement, unless as a result of our wilful default, fraud or negligence. We will have no liability to you in relation to any loss that you suffer as a result of any delay or defect in or failure of the whole or any part of our trading platforms, Website or any systems or network links or any other means of communication. We will have no liability to you, whether in contract or in tort (including negligence) in the event that any computer viruses, worms, software bombs or similar items are introduced into your computer hardware or software via Websites, provided that we have taken reasonable steps to prevent any such introduction.

7.5Unless you are offered telephone trading services by us, you must ordinarily trade online via our Website. If you cannot close an open Trade due to technical difficulties with the online trading platform, you may close such a Trade by telephone (see clause 7.8 below regarding System Failure).

7.6You are responsible for ensuring that your information technology is compatible with ours and meets our minimum system requirements. The minimum system requirements are as set out on the Website from time to time.

7.7Unless otherwise indicated or agreed, any prices shown via any Electronic Service are indicative at the time shown and based on data which is subject to constant change. The execution price is that price which is confirmed to you at the time of execution.

System Failure

7.8If, despite our numerous safeguards, any trading platform or related system failure should occur that makes trading impractical, all new trading will be suspended. All open Trades will remain open until the close of the relevant Underlying Market; however, while systems are down, no Stop Loss Order or Limit Order may be executed. We are not responsible for any additional trading loss suffered due to a Stop Loss Order or a Limit Order not being duly executed. You remain liable for any open Trades until confirmation is issued that they have been closed. In the event of a system failure, you may close Trades via the telephone. Please note that during periods of high volatility in Underlying Markets we may experience unusually high telephone call volumes and where Electronic Services or telephony is interrupted you may not be able to get through. In such circumstances we will use commercially reasonable efforts to answer your call as quickly as possible but will not be liable to you for any trading loss due to delay, unless as a result of our fraud or wilful default.

8Telephone Trading

8.1You may use telephone trading services if:

(a)we invite you to use telephone trading services offered by us during trading hours of the relevant Underlying Market provided you meet certain requirements as determined by us; or

(b)you require the telephone service as an alternative form of communication where your normal other form of communication (example: via our online trading platform) is unavailable.

8.2Our current hours for receiving the telephone service are from Sunday at 21:30 to Friday at 21:15 (London UK time) inclusive, which may change from time to time as noted on our Website.

8.3The commission quoted via the telephone service may in certain circumstances differ from that which is displayed on our online trading platform.

8.4We will not accept any instructions in relation to a Trade where such instructions are received solely in the form of messages left on our answer-phone or voicemail facilities. Where you instruct us by telephone in accordance with the terms of this Agreement, you must only do so by talking directly to one of our authorised staff members via one of our recorded landlines.

8.5We reserve the right not to provide a two-way price to you on the Products we offer you.

8.6Without prejudice to any other term of this Agreement, the provisions of clause 13 (Margin) will apply to Trades made via the telephone trading service.

8.7Although Trades may be placed over the telephone as provided under this clause 8, it is your responsibility to monitor and manage such telephone Trades and your accounts by logging onto the Website.

8.8Execution of an Order will only be confirmed by telephone and/or email if this is specifically requested.

9Trading

9.1The provisions of this clause 9, in addition to all other provisions of this Agreement, will apply to each Trade placed by you with us. You are trading on the price of a financial instrument (example: a share) and will not be entitled to delivery of, or be required to deliver, the underlying financial instrument, nor will you be entitled to ownership thereof or any other interest therein.

9.2You may place Trades via the online trading platform or in accordance with clause 8, by telephone. We accept no liability for instructions sent electronically (example: by SMS, email, Bloomberg or other instant messaging services) and are under no obligation to act on such instructions unless you have obtained prior permission from us.

9.3We will provide you with a means to Trade (sell or buy) the price of various financial contracts for a given amount per movement of the Underlying Market.

9.4When trading on the ETX Capital Platform you may not hold opposing Trades (or positions) in the same Product, in the same account, for the same expiry date. For example, you may not open one (1) 'buy' Trade and then open one (1) 'sell' Trade in the same Underlying Market. Should you seek to do so, the earlier Trade will be automatically closed and a profit or loss will be realised.

9.5You acknowledge that we can accept and execute Orders only if actually received or generated and then on a “not held” basis (i.e. we shall not be held responsible for the execution of the Order at the price indicated or otherwise).

9.6Each Trade opened by you will be binding on you, notwithstanding that by opening the Trade you may not have had sufficient Initial Margin in your account or have exceeded any credit or other limit applicable to you in respect of your dealing with us.

9.7You acknowledge and agree that Trades are speculative instruments and agree that you will not enter into any Trades with us in connection with any corporate finance-style activity.

9.8We may report any Trade or other transaction undertaken by you to any relevant regulatory authority as may be required by law or best practice.

Trade-through Charts

9.9As part of our ETX Capital Platform offering we provide you with a charting tool “Trade-through Charts” whereby you can perform various trading functions including opening and closing Trades. We will use reasonable efforts to ensure an acceptable service; however, in using Trade-through Charts you accept that the price data displayed may be delayed and that we do not guarantee the accuracy or completeness of the data, either current or historical, and that we do not guarantee that the service will be uninterrupted.

9.10You acknowledge and agree that in the event of any discrepancy between the data (pricing or otherwise) displayed in Trade-through Charts and the data displayed on the ETX Capital Platform, the data in the ETX Capital Platform will prevail.

9.11It is a condition of your use of Trade-through Charts that you agree to any reasonable conditions that we place on its use.

9.12

Robotic Trading Tools

9.13You take sole responsibility for any third party applications that you use in conjunction with your ETX Capital Platform account.

9.14It is your sole responsibility to conduct due diligence on the respective software programs you use and determine for yourself whether the software is right for you. If you are unable to make that determination yourself you should seek advice from a professional advisor. We will not be able to give you any advice on the selection or use of any interface or other third party software or hardware. If you decide to install or use an Expert Advisor, Script or Indicator you do so at your own risk. We shall not be responsible in any way whatsoever in respect of decisions, Orders, Trades or signals generated by the use of an Expert Advisor, Script or Indicator, your use of such tools or any resulting trading losses.

9.15Please note that an Expert Advisor or Script may generate a high number of trades and at times leverage your account to the maximum possible exposure to a market given your available funds. It is your sole responsibility to monitor these Orders and Trades and to maintain sufficient Trade Funds Available in your account at all times.

9.16If an Expert Advisor or Script is creating high volumes of Trades, pending Orders or Order amendments that we believe is impacting the performance of our servers then we may, in our sole discretion, disable the Expert Advisor function of your account. In normal circumstances we will use reasonable efforts to notify you of our intention to suspend your account. Additionally, please see our Overloading Policy at clause 12.9 below.

9.17We will enable the Expert Advisor function as a default for your account; however, we reserve the right, in our sole discretion, to ban or otherwise prohibit the use of any particular Expert Advisor or Script or to disable your account for all Expert Advisors and Scripts.

Markets

9.18We offer Trades in a variety of financial contracts of all kinds, including, but not limited to, single shares, single share indices, index futures, bond indices and futures, commodities, foreign exchange rates, foreign exchange futures, and options on any of these instruments;

9.19We list on our Website the Product specifications for each type of Trade. These specifications include the expiry date, margin requirement and the hours of trading. Please read the contents of the Product specification thoroughly before you submit your first Trade of that type. If you are unsure about any of the content of the Product specification you should not trade. If you require any further information in relation to the Product specification please let us know immediately.

Our Prices

9.20We maintain a Bid Offer Spread between the price at which we buy and the price at which we sell in each market upon which the relevant contracts are based. The Bid Offer Spread varies between markets and can be changed by us at any time. The Bid Offer Spread and the prices are determined solely by us at our complete discretion.

9.21Prices quoted by us are derived by reference to the price of the Underlying Market which is quoted by an Exchange, a liquidity provider or other third party market maker that we have selected at our discretion. The prices quoted by us may be different than the price of an Underlying Market as quoted by other parties.

9.22Prices quoted are subject to confirmation by us. We will exercise all due care and skill in the preparation of the on-screen price but, due to the nature and speed of movements in the Underlying Market, the price indicated may not necessarily be the exact price available to open or close a Trade. We will not be liable for any losses or costs which you may incur as a result of not being able to open or close a Trade at a particular on-screen price, unless as a result of our fraud or wilful default.

9.23Due to the potential for computer or other errors, we may take any reasonable step as set out in clause 9.24 for any Trades executed at prices which are the result of any error, omission or misquote (whether by us or any third party) which is manifest or palpable, including a misquote by us taking into account the current market and currently advertised prices (examples: the wrong price or market or any error or lack of clarity of any information, source or commentator), or is otherwise clearly at odds with the fair market price (a “Manifest Error”).

9.24If a Trade is based on a Manifest Error, we may, acting reasonably and in good faith and in our sole discretion:

(a)void the Trade (i.e., treat the Trade as if the Trade had never taken place);

(b)close the Trade on the basis of our then current prices; or

(c)amend the Trade, so that it is as it would have been if the Order was executed in the absence of the Manifest Error.

9.25We can exercise the above rights even if you have entered into (or refrained from entering into) arrangements with third parties relating to the relevant Trade and even if you may suffer a trading loss as a result.

Closing a Trade

9.26Trades may only be closed during our normal trading hours. When a Trade is closed, any trading losses will be debited (deducted) from your cash balance and any profits will be credited (added) to your cash balance.

9.27Trades can generally be closed out by you at any time during the relevant opening hours of the Market and, where applicable, before the Expiry Date and time of the relevant Trade on the price quoted from time to time by us.

9.28Without prejudice to any other rights that we may have under this Agreement, if your Trade has not been closed by the relevant Expiry Date, we may close (settle) it at the applicable official quotation or value or, if there is no formal Underlying Market, at such other relevant price, taking into account any Bid Offer Spread applied by us in such circumstances.

9.29Any funds shown as Liquidation Value in your account at closure will, on your request, be returned to you in accordance with clause 6 (Your Money).

Rolling Over and Expiry of Trades

9.30You may make a telephone request to us up to thirty (30) minutes before the Expiry Date of an open Trade to extend the period of that Trade (a “Roll Over”). On making a request for a Roll Over, any attached Orders to the expiring Trade will not automatically roll over to the newly rolled Trade. You must specify a new Order if required. We reserve the right to reject any such request by you to Roll Over an open Trade and will not be obligated to give you a reason for the rejection. You will be informed of such rejection by telephone or email.

9.31If we accept a request to Roll Over an open Trade:

(a)the original Trade will be closed at our current price; and

(b)a new Trade is immediately placed in the market underlying the first Trade at our relevant current price offered for the new Trade.

9.32We have the right to charge you in accordance with clause 5 (Our Charges) for any expenses or costs (including third party expenses and costs) incurred in connection with processing a request made by you to roll over an open Trade. If you do not close an Expiring Trade, it will be closed automatically upon its Expiry Date, unless a request for a Roll Over has been accepted.

9.33In exceptional circumstances we may require an expiring trade to Roll Over (example: where we are unable to close out our related hedging trade).

Non Expiring Markets

9.34Non Expiring Trades may be closed by us where we deem it necessary (examples: in a Force Majeure Event or where the cost of financing the Trade has used more than your Trade Funds Available). When Trades are closed by us, the price will be at the full commission quoted by us at that time or at a price that in our opinion fairly reflects the price at that time.

9.35These Trades will remain open so long as you have funding available to support the minimum Margin for each Market. We reserve the right to move Stop Loss Order prices on any open Trade so that you remain in a positive available funds position. Should you be unable to support any Trade due to the ongoing cost of the daily financing charge (and the constraints of the minimum margin) we reserve the right to close part or all of any Trade sufficient to bring you into a positive available funds position.

9.36Any Order attached to such a Trade remains attached to the Trade until the expiry of the Order, closure of the Trade or cancellation of the Order. All other terms and conditions of this Agreement apply to Non-Expiring Trades.

10Market Disruption

10.1For the purposes of this Agreement, a “Disruption Event” is the occurrence of any of the following circumstances or events:

(a)the Underlying Market related to the Market you are trading in or the Exchange on which the Underlying Market trades, whether directly or indirectly (example: on a future of or option on such Underlying Market), is the subject of a takeover offer or a merger offer; or the issuer of such Underlying Market or operator of Exchange has entered into or is the subject of insolvency or liquidation proceedings (or any Act of Insolvency has occurred in relation to such issuer or operator); or

(b)any event which disrupts the trading of the underlying security or trading on the Exchange including the suspension of or limitation of trading by reason of movements in price exceeding limits permitted by the relevant Exchange, or of regulatory or other intervention, or early closure of the Exchange or otherwise, and/or any other event causing market disruption and which is a material disruption.

10.2If we in our sole and absolute discretion determine that a Disruption Event has occurred on any day on which an Exchange is scheduled to be open for its regular trading session, then such day shall be a “Disrupted Day”.

10.3If a Disrupted Day occurs, we may in our absolute discretion, with or without notice to you, (and without prejudice to any other rights and remedies we may otherwise have under this Agreement or at law) take the following steps with respect to Trades that are affected by the Disruption Event:

(a)suspend trading in the Market;

(b)close any or all open Trades, refuse to place any Trades, cancel any Orders and fill any Orders in each case at such price as we may consider in good faith to be appropriate in all the circumstances;

(c)in the event of suspension of, or another Disruption Event relating to, the Underlying Market, we reserve the right to, but are not obligated to, value the relevant Trade at zero (0);

(d)suspend or modify the application of any terms of this Agreement to the extent that it is impossible or not reasonably practicable for us to comply with them;

(e)immediately require payment of any Maintenance Margin and/or any other amounts owed by you to us; or

(f)take or omit to take all such other actions as we deem appropriate in the circumstances, and we will not be liable to you for any Loss arising for any reason, unless as a result of our negligence, wilful default or fraud.

10.4If trading is suspended or any of the Services are otherwise partly or fully unavailable, we will seek to inform you as soon as practicable and generally through notification on our Website.

10.5Any Trade closed by us pursuant to clause 10.3 will be closed on the basis of our current price for the relevant Market.

10.6We will not be liable for any Loss suffered by you as a result of the suspension of trading or any Service (or any delay in notifying you) as described in this clause 10, unless as a result of our fraud or wilful default.

11Scalping Policy

11.1Our Scalping policy shall apply to any on-line quoted financial market that is traded through your use of the ETX Capital Platform.

11.2We may deem an activity as Scalping if that Order or Trade has any of the below characteristics:

(a)the Trade is opened and closed within Two (2) minutes (i.e. the Order for the closing Trade follows the Order for the open Trade in two (2) minutes or less);

(b)an opposing Trade is placed within two (2) minutes of each another Trade being opened thus creating a fully or partially hedged position (also known as a “locked position”); or

(c)the Order for opening or closing the Trade is placed on a latent price.

11.3By providing fixed spreads and liquidity to you, where it is possible to do so, we try to help you trade in volatile global financial markets by giving you greater price stability. We do not provide fixed spreads and liquidity to enable Scalping and will deem any instance of Scalping to be a Manifest Error (for more information on the treatment of Manifest Errors please see that section of the standard customer Terms and Conditions). Scalping is considered a breach of your Terms and Conditions and may result in the immediate termination of your account and your access to our servers.

11.4We reserve the right, in our sole discretion, to change your underlying liquidity feed to another provider in order to protect against abuse (including Scalping). Such a change may result in variable spreads being applied to markets you trade. If the liquidity feed is changed we shall have no requirement to notify you or give you prior warning of the change. We shall not be obligated to change the liquidity feed and may take any other action permitted by standard customer Terms and Conditions.

12Orders

12.1We offer a range of different Orders to open and close Trades. It is your responsibility to understand the features of an Order. If you do not understand the features of an Order you should not proceed. If you require any further information about the features of an Order or have any questions please contact us immediately.

12.2Once an Order is triggered, (i.e., your specified price is reached or breached), we will attempt to fill your Order within a reasonable time and at the next price available to you in that Market. For the avoidance of doubt, your Order is triggered by our price during our Market hours, and not the Underlying Market and its opening hours.

12.3If your Order is a Stop Loss Order then the price we fill your Order at may be the same, or worse than the price you specified in your Stop Loss Order. If your Order is a Limit Order then the price we fill your Order at may be the same, or better, than the price you specify. However, any better priced fills are at our sole discretion and you accept that we are under no obligation to pass this benefit on to you. It should be noted that in respect of an FX Trade you will not benefit from any better price fills should the price slip in your favour.

12.4If your Order is a Guaranteed Stop we guarantee that the price at which we fill your Order will be the same as the price you specified in the Guaranteed Stop. In addition to the commission or Bid Offer Spread that you pay in respect of each Guaranteed Stop, you will be required to pay a Guaranteed Stop premium as set by us, in our absolute discretion. This premium will be communicated to you before you set your Guaranteed Stop price. Where you have opened a Trade with a Guaranteed Stop you may only amend the Guaranteed Stop price with our consent (which may be withheld) and upon payment of additional Guaranteed Stop premium and any additional Margin that may be required. Where you have previously opened a Trade and not set a Guaranteed Stop and subsequently wish to do so, we may, at our absolute discretion agree to do so and you will be liable to pay the Guaranteed Stop premium. Additionally, we reserve the right, acting reasonably, to cancel or amend any Guaranteed Stop order and if canceled will refund any premium paid.

12.5 In determining whether your Guaranteed Stop price has been met or exceeded, we (at our absolute discretion) may disregard any pre-market, post-market, intraday auction periods or any other period that in our opinion may give rise to short-term price spikes or other distortions.

12.6Acceptance of an Order does not commit us to execute the Order, and we will not be obligated to execute an Order if, at the time the Order would otherwise be executable, there is insufficient Trade Funds Available in your account.

12.7You accept that there are some manual elements to our Order execution and although we seek to execute all Orders in a timely fashion in accordance with our Order Execution Policy there may be times and circumstances beyond our control that may result in your Order not being filled in our normal timely fashion (example: there may be an abnormally high number of simultaneous Orders triggered on our system).

12.8Every Market normally has a minimum price range between our current quote and the price of any Orders that are being created, and we reserve the right not to accept any Orders which are less than this minimum price range.

12.9There may be circumstances, such as a Corporate Action on a particular share or index, where your Order becomes unreasonable to act on. In such circumstances we have the right to cancel or amend your Order and shall not liable to you as a result of such action, unless as a result of our negligence, fraud or wilful default.

12.10Overloading Policy – If we identify that high volumes of pending or market Orders are being placed on your account and that you have insufficient funds in your account to cover the margin required if those Orders were executed, we reserve the right to immediately suspend trading on your account as we consider this to be abuse. We will make reasonable efforts to notify you of our intention to suspend your account but will not be liable to you for failing to do so, unless as a result of our negligence, fraud or wilful default. If we, in our sole discretion, determine that this abuse has been intentional we reserve the right to immediately terminate your trading account.

13Margin

Requirements

13.1The Initial Margin Requirement shall be paid by you before you open each Trade and we reserve the right to reject any Order or Trade where the Initial Margin Requirement has not been received by us. You acknowledge that the amount of Initial Margin Requirement does not indicate or in any way limit your potential trading losses.

13.2Once a Trade has been opened you may be required to post additional amounts called Maintenance Margin during the term of the Trade. It is your responsibility to ensure that all necessary Margin payments are made.

13.3Depending on your type of account a Stop Loss Order may be automatically placed on a Trade if your account does not have sufficient Trade Funds Available for the Initial Margin Requirement of that Trade (Note: This Order will not be a Guaranteed Stop; please see our Website for additional information). If this occurs you will receive the details of any Stop Loss Order placed in your online Trade confirmation details. You will be able to change the price of this Order or cancel this Order as long as your account continues to have positive Trade Funds Available. If you have insufficient Trade Funds Available for an automatic Stop Loss Order to be placed the minimum distance away from an attempted Trade price then the Order for the attempted Trade will be rejected.

13.4There may be unforeseen circumstances where it becomes necessary to increase or decrease the amount of Initial Margin Requirement or other Margin we require from you on your open Trades. We will make reasonable efforts to notify you of any such increase in Initial Margin or other Margin. Examples of such circumstances include, but are not limited to:

(a)a change in the conditions of the Underlying Market such as volatility or illiquidity in the financial markets more generally; or

(b)a change in your circumstances which we believe is relevant to your financial means.

13.5In calculating any Margin required from you we may, at our discretion, have regard to your Trades (positions) held with us which may result in a reduction in the amount of Margin required of you.

13.6We will only accept money (in the methods described in clause 6 (Your Money) or as otherwise notified to you) and we will not, under any circumstances, accept any securities or any other assets as payment of Margin.

Margin Call

13.7It is your responsibility to ensure that you are aware of the status of your account at all times and monitor your Trades to ensure you have sufficient Trade Funds Available on your account to maintain your Trades or continue trading.

13.8If your Trade Funds Available balance is below zero (0) you will be subject to a Margin Call and must provide Maintenance Margin immediately to bring your Trade Funds Available balance to zero (0) or above unless we expressly agree with you otherwise (example: if we reduce or waive all or any part of an Initial Margin Requirement or Maintenance Margin. Note: Any such waiver or reduction must be agreed in writing by us and, unless expressly stated otherwise, will only apply to the specified Margin Call and may be revoked by us upon notice to you).

13.9We are not obliged to inform you of a Margin Call; however, we may inform you of a Margin Call orally, electronically or in writing. If in writing, the terms of clause 23 (Communications and Notices) will apply. You must notify us immediately of any short or long term changes to your contact details to ensure you can be notified of any Margin Call.

13.10We are entitled to request funds to cover a Margin Call at any time. A Margin Call will be deemed to have been made by us if we have used reasonable efforts to make contact using the contact details you have provided but have been unable to do so within a reasonable amount of time. Please be aware that a reasonable amount of time may well be a matter of minutes depending on the circumstances (including, but not limited to, the Market and/or size of your Trade).

13.11If a Margin Call is not met by you (in the form of cleared funds in Pounds Sterling or any other currency that we have agreed to receive) in accordance with this clause 13, we may in our discretion:

(a)close out any or all (in whole or in part) of your open Trades;

(b)exercise our rights of set off and netting under this Agreement; or

(c)close your account and not open any further Trades for you.

13.12Once the Margin Call has been satisfied - whether by the closure of one or more Trades or by the deposit of funds - and you wish to open additional Trades, the Initial Margin Requirement for any new trade must be covered in full.

13.13We will not be liable for any Loss suffered as a result of our exercising our rights under this clause 13, unless as a result of our negligence, fraud or wilful default. Any funds that you deposit or are required to deposit by way of Margin do not limit your liability to us under this Agreement or otherwise under law.

14Netting Positions

14.1All Trades and transactions between you and us in respect of your account(s) are entered into in reliance on the fact that this Agreement and all Trades and transactions form a single agreement between the parties, and that we would not otherwise enter into any Trades and transactions with you.

14.2If we have exercised our rights under this Agreement to close your open Trades and/or to close your account, we may:

(a)combine and consolidate your account with any or all other accounts held in your name with us, even if any of those accounts have been closed; and

(b)set-off against each other the amounts referred to in sub-clauses (i) and (ii) below:

(i)your Trade Funds Available (if a credit balance), profits on open Trades and any sums due to you from us of whatever nature and whenever payable; and

(ii)your Trade Funds Available (if a debit balance), any outstanding Margin Call, losses on open Trades and any losses or other sums due to us from you of whatever nature and whenever payable.

14.3You may require us to exercise the provisions of this clause 14 if all of your Trades have been closed.

14.4If we exercise any of our rights under this clause 14, all payment obligations will be consolidated into one obligation for you to pay a net sum to us (as we may direct), or for us to pay a net sum to you.

15Options

15.1We quote option prices on individual shares, stock indices, commodities and interest rates. In trading on options you are trading on the future value of the option. Your option Trades may be cash settled and the underlying option may be exercised by or against you in delivery of the underlying security.

15.2We reserve the right to vary Margin requirements for option Trades at our sole discretion. We will use reasonable efforts to notify you of any such increase in required Margin for your open Trades.

15.3If there is a dividend payable within the life of the option and this dividend forms part of its Intrinsic Value, we reserve the right to quote the price of the option Trade after making an allowance for the deduction of the dividend. If there is a change in the dividend or the dividend date in circumstances where we have bought as a hedge and have exercised the relevant underlying option, you will indemnify us for any Losses thereby incurred and we may debit your Trade Funds Available accordingly.

15.4You should be aware of the special expiration schedules on index and equity options and must familiarise yourself with the details contained in the options table set out on the Website. Trades on options which are not closed by you and are allowed to expire will be closed at the following:

(a)Trades on put options will be closed at a price equal to the Strike Price less the relevant Exchange price or zero (0), whichever is the greater; and

(b)Trades on call options will be closed a price equal to the relevant Exchange price less the Strike Price or zero (0), whichever is the greater.

15.5We will take note of any adjustments made by NYSE LIFFE or any other relevant Exchange.

15.6For further information on option contract details, hours of trading, settlement times and rules on dividends please see the Website or contact customerservice@etxcapital.com.

16Corporate Actions, Dividends and other Situations

16.1If a Corporate Action takes place that affects an Underlying Market and consequently our Market we will make a fair and appropriate retrospective adjustment, if any, to any open Trades and/or Orders you have in that Market, reflecting as close as possible the economic impact of the Corporate Action as if you were a holder of the Underlying Market (example: closing and opening new Trades and/or making cash adjustments to your account).

16.2In the event that a Corporate Action provides the holder of the Underlying Market with a choice (example: to choose between receiving shares or cash) we will, where practicable, give that choice to you but will not be liable for any Loss should we make the choice in the absence of direction from you, unless as a result of our negligence, fraud or wilful default.

16.3We will make any relevant adjustments to your Trades with respect to a Corporate Action as soon as reasonably practical for us to do so.

16.4We will not transfer voting rights relating to an Underlying Market to you or otherwise allow you to influence the exercise of voting rights held by or on behalf of us.

16.5Some of our prices do not take into account any dividend events that may take place on that market (examples: a Financial Spread Bet or CFD on an individual share). If a dividend event takes place on such a Market, and you have an open Trade in that Market on the ex-dividend date, we will make an adjustment to your account to appropriately reflect the dividend event. If you have a Long Trade then a credit will be made to your account. If you have a Short Trade then a debit will be taken from your account. Any dividend adjustment we make may reflect the dividend adjustment made to our hedged position by our hedging partners.

16.6Some Markets we make contain a dividend element which is forecasted by us. In the event that the declared dividend is unusually large, small or cancelled or the ex-dividend date differs from our forecasted ex-dividend date we reserve the right to make an adjustment to the opening price of a Trade to reflect such differences, provided any such adjustment must be fair and reasonable.

16.7If you have a Guaranteed Stop on a Trade in an Underlying Market that becomes subject to a dividend adjustment, we reserve the right to amend the Guaranteed Stop price by the size of the dividend adjustment.

16.8If an Underlying Market becomes suspended we reserve the right to margin all associated Trades at 100% and value the market appropriately. This may mean your Trade being either valued at zero (0) or at the last price held in our Market at the time of the suspension.

16.9If an Underlying Market becomes delisted we reserve the right to close all Trades associated with that Market at zero (0).

16.10In the event that a situation arises in relation to your Trade that is not covered under these Terms and Conditions we will resolve the matter, acting reasonably and in good faith and, where appropriate, by taking such action as is consistent with market practice and/or paying due regard to the treatment we receive from the Exchange, market maker, broker or agent in relation to hedging our exposure to your Trade.

17Market Abuse

17.1We may hedge our exposure to you by opening analogous positions with other institutions. The result is that, when you Trade with us, such Trades can, through our hedging, exert a distorting influence on the Underlying Market in addition to the impact that it might have on our prices.

17.2In addition to your representations and warranties in clause 4.3 (Basis of Trading), each time you open or close a Trade, you represent and warrant to us that:

(a)you will not place and have not placed a Trade with us relating to a particular Underlying Market if to do so would result in you, or others with whom you are, or may reasonably be regarded as, acting in concert, having an exposure to that Underlying Market which is equal to or exceeds the amount of a declarable interest in the relevant company. For this purpose, the level of a declarable interest will be the prevailing level at the material time, set by law, rule or regulation or by the Exchange(s) upon which the Underlying Market is listed;

(b)you will not place and have not placed a Trade with us in connection with a placing, issue, distribution or other analogous event, or an offer, takeover, merger or other analogous event in which you are involved or otherwise interested;

(c)you will not place and have not placed a Trade that contravenes any law, rule or regulation against insider dealing or market abuse. For the purposes of this clause 17 you agree that we may proceed on the basis that, when you open or close a Trade with us in a Market, you may be treated as dealing in securities within the meaning of Part V of the Criminal Justice Act 1993 and/or any law, rule or regulation against market abuse; and

(d)you will not otherwise place and have not placed a Trade in circumstances which may be considered to constitute market abuse.

17.3For the purpose of complying with legal and regulatory obligations we may in our absolute discretion, and without being under any obligation to inform you of our reason for doing so, close any Trades that you may have open and may, if we so elect, treat all Trades closed under this clause 17 as void.

18Force Majeure Events

18.1If we are prevented, hindered or delayed from performing any of our obligations under this Agreement by a Force Majeure Event, then our obligations under this Agreement will be suspended for so long as the Force Majeure Event continues and to the extent that we are so prevented, hindered or delayed. We will not be deemed to be in breach of this Agreement or otherwise be liable to you by reason of any delay or failure in performance of any of the obligations under this Agreement to the extent that the delay or failure is caused by a Force Majeure Event, and time for performance will be extended accordingly.

18.2A Force Majeure Event means:

(a)acts of God, war, hostilities, riot, fire, explosion, accident, flood, sabotage, power supply interruption, failure of communications equipment, lock-out or injunction, compliance with governmental laws (domestic or foreign), regulations or orders or breakage or failure of machinery;

(b)the suspension or closure of any market or the abandonment or failure of any event on which we base our quotes or to which our quotes may relate or the imposition of limits or special or unusual terms on trading in any such market or on any such event; or

(c)the occurrence of excessive movement in the price of, or loss in the liquidity of, any of our indices or Products and/or any corresponding market, or our reasonable anticipation of such, or any other cause whether or not of the class or kind referred to above which affects performance of this Agreement arising from or attributable to acts, events, omissions or accidents beyond our reasonable control. See also clause 10.1 as to Market Disruption.

18.3We may in our absolute discretion take all or any of the actions referred to in clause 10.3 (Market Disruption) upon the occurrence of a Force Majeure Event.

19Queries, Complaints or Disputes

19.1If you wish to query any aspect of a Trade you must notify us as soon as you become aware of the issue and in any event within three (3) Business Days of the event giving rise to the issue. We reserve the right not to entertain any query or dispute raised after this time period. We reserve the right to suspend trading in your account while a dispute is being investigated and resolved.

19.2Subject to the above, if you wish to make a complaint or a dispute arises between us in connection with the performance of any Services, you will promptly provide our Customer Support team with full details of the relevant complaint or dispute. Should you be dissatisfied with the handling of your complaint, you may refer the dispute in writing to our Compliance Officer who will use all reasonable efforts to investigate promptly and fully and resolve the matter.

19.3Our Compliance Officer will follow our Complaints Procedure in accordance with FSA Rules and if you are unhappy with the decision reached by our Compliance Officer, and you have been categorized as a Retail Client, you are entitled to refer your complaint directly to the Financial Ombudsman Service. Information on the Financial Ombudsman Service, including how to make a complaint, eligibility criteria and the procedures involved, is available from the Financial Ombudsman Service website at: www.financial-ombudsman.org.uk or by contacting them at: The Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR.

19.4As an FSA regulated firm, we are covered by the protected investment business scheme operated by the Financial Services Compensation Scheme (FSCS). This scheme may in certain circumstances pay compensation to clients if they are eligible and if the regulated firm is unable or is likely to be unable to meet its’ liabilities to clients including when the firm becomes insolvent. Compensation may be available to eligible investors in respect of protected claims up to a maximum of £50,000 per claimant. Further information is available on the FSCS website at: www.fscs.org.uk or by contacting them at: Financial Services Compensation Scheme, 10th Floor, Beaufort House, 15 St Botolph Street, London EC3A 7QU..

19.5If there is any dispute, the records held by us will, in the absence of Manifest Error, be treated as the accurate prevailing records of account.

19.6To aid the investigation into your complaint or dispute, you are urged to keep your own record of your Trades (including times, amounts and Markets). Without such information it may not be reasonably possible for us to locate any record in relation to your complaint or dispute.

20Events of Default and Closure of Accounts

20.1If any Event of Default occurs we may immediately take all or any of the following actions:

(a)require immediate payment of any amounts you owe us;

(b)close all or any of your open Trades;

(c)if the Base Currency of your Account is a currency other than Pounds Sterling, convert any balance to Pounds Sterling;

(d)cancel any of your Orders and open Trades;

(e)suspend your Account and refuse to execute any Trades or Orders;

(f)exercise our rights of set-off; and/or

(g)terminate this Agreement.

20.2Without limiting any right to terminate this Agreement at any time, we may close your account in the following circumstances:

(a)you fail to pay Maintenance Margin or any other amount owed to us on time;

(b)any information supplied by you during the application process or at any other time is found or believed to be misleading or false;

(c)your trading or account activity is of such a size or style that we no longer wish to deal with you;

(d)we have reasonable grounds for suspecting the activity on your account may have involved market abuse, money laundering or any criminal activity;

(e)we are in an ongoing dispute with you and decide that we are unable to continue to provide Services to you; or

(f)you are abusive to our staff.

20.3Upon giving you notice of our intention to close your account pursuant to clause 20.2, you will not be permitted to open any new Trades and you will only be entitled to make Trades or otherwise deal as a client insofar as necessary to close all open Trades. We may close any Trades remaining open ten (10) Business Days after the date on which we give you notice.

21Indemnity and Liability

21.1Nothing in this Agreement shall limit or exclude our liability to you in respect of:

(a)your death or personal injury caused by our negligence; or

(b)Loss caused by fraud or fraudulent misrepresentation.

21.2Save as provided in clause 21.1 we have no liability to you for any Losses, costs, damages, liabilities or expenses suffered relating to this Agreement or any trading activities undertaken by you using the Services, except where caused directly by the wilful default, fraud or breach of this Agreement by us or our employees, agents or sub-contractors.

21.3We shall not be liable to you for any indirect Losses which you suffer, except in the case of our wilful default or fraud. “Indirect loss” would include, for example, loss of profit, loss of opportunity, loss of business and any other indirect losses.

21.4Unless prohibited from excluding liability by law, we will not be liable to you for incidental, special, punitive or consequential damages caused by any act or omission of ours under this Agreement. This limitation will include claims relating to loss of business, loss of profits, loss of opportunity, failure to avoid loss, loss of goodwill or reputation or the corruption or loss of data.

21.5Without prejudice to any other limitation of our liability contained elsewhere in this Agreement, the maximum amount of our liability in respect of any Loss that you may suffer in relation to any one Trade will be the amount equal to the Margin you placed with respect to that Trade.

21.6You will be responsible to ETX Capital, its principals, officers, directors, employees, agents, successor and/or assigns, for all Losses, claims, proceedings and expenses (including but not limited to legal expenses and experts' fees) arising out of or in connection with (i) any failure by you to perform any of your obligations under this Agreement, (ii) any false information or declaration made to us or to any third party, or (iii) any act or omission or fraud by you or an Authorised Person or by any person obtaining access to your trading account by using your designated account number, user name or password, whether or not you authorised such access.

22Amendments, Waivers and Rights

22.1We will be entitled to amend or vary the terms of this Agreement from time to time upon ten (10) days notice to you unless such amendment or variation is required sooner as a result of a change of Applicable Regulation. Any such amendment or variation will apply to all open Trades and all Orders as at and after the effective date of the relevant amendment or variation. If you do not agree with such amendments you are at liberty to close any open Trades and terminate this Agreement in accordance with the provisions of clause 31 (Termination).

22.2No delay in the exercise or non-exercise by either party of any right, power or remedy provided by law or under or in connection with this Agreement (example: in respect of a Margin Call) will impair such right, power or remedy or operate as a waiver or release of that right. Any waiver or release must be specifically granted in writing, signed by the party granting it.

22.3The rights and remedies of each party under this Agreement are cumulative and not exclusive of any rights or remedies of that party under the general law. Each party may exercise each of its rights as often as it thinks necessary.

22.4We do not require the consent of any Associate or Associated Company of ours to amend, vary, modify, suspend, cancel or terminate any provision of this Agreement.

23Communications and Notices

23.1It is your responsibility to keep your contact details up to date and notify us immediately of any changes.

23.2You hereby consent to all telephone communications made by or to you or on behalf of you with us being recorded. . These recordings will be our sole property and may be used for training purposes, to confirm instructions, as evidence in the event of a dispute or as may be required by the FSA. We will retain telephone call recordings as required by the FSA Rules.

23.3We will generally not accept any instructions from you unless it is orally by a designated telephone line or electronically via our trading platform (or any other forms that may be agreed by us in advance).

23.4You consent to the receipt of documents in electronic form via email, our Website or other electronic means.

23.5From time to time we may provide information to you which presents your multicurrency balances in the equivalent value of your Base Currency, using rates prevailing at the time the information is produced. However, unless we have converted the non-Base Currencies pursuant to clause 5.7 (Currency Conversion) the balances may not have been physically converted and the presentation of the information in your Base Currency will be for information only.

Confirmations

23.6Confirmation of your Trade will appear electronically on your online account, and by email depending on your email preferences. You can change these preferences via your online account or by contacting us. You must notify us if you are expecting a confirmation and no confirmation is shown on the online trading platform. You must check that any Trade confirmation contains the correct details of the Trade to which it relates. If you wish to dispute any of the details, you must notify us immediately and the matter will then be dealt with in accordance with clause 19 (Queries, Complaints or Disputes). If you have not received such a Trade confirmation and you think that you should have, it is your responsibility to make an enquiry of us. You should retain a printed copy of all Trade confirmations for record purposes.

23.7If a Trade confirmation contains an error or is otherwise inaccurate, this will not affect the validity of the relevant underlying Trade that has been executed; however a Trade confirmation for a Trade on an incorrect price is not binding on us. See clauses 9.28 to 9.33 (Our Prices).

Notices

23.8All communications relating to this Agreement, whether correspondence, documents, written notices, confirmations and statements or otherwise will be sent to you in accordance with the latest contact details provided by you. It is your responsibility to ensure that we are kept informed promptly of all changes in this regard. All communications will be deemed properly made:

(a)if sent by first class post to the address last notified by you to us, upon delivery;

(b)if hand delivered to the address last notified by you to us, at the time of being deposited at that address;

(c)if sent by fax or text, as soon as it has been transmitted to the fax or mobile number last notified by you to us; or

(d)if sent by email, as soon as it is transmitted to the last email address provided by you to us.

23.9In the event of a conflict between any provision of this Agreement and a non-English language version this English language version shall prevail.

23.10Where we are able and it is commercially reasonable to do so, we will endeavour to provide you with documentation and communications in your choice of language; however, we reserve the right to communicate with you in English so long as this Agreement is in effect.

23.11You acknowledge and agree that we may call upon you by telephone or visit at a reasonable hour or otherwise communicate with you without express invitation.

23.12Should you wish to receive monthly statements, you may make a written request to customerservice@etxcapital.com.

24Data Protection

24.1You acknowledge that you will be providing personal information to us within the meaning of the Data Protection Act 1998 when making an application to become a client and otherwise from time to time and that we may also receive information from third parties as set out in clause 24.5 below. You consent to us and our Associated Companies processing your information for the purposes of establishing and administering an account in respect of the Services and otherwise in accordance with the Privacy Statement.

24.2The Privacy Statement can be found on our Website and you should read this document before commencing the application process.

24.3You agree that we may disclose your information to:

(a)regulatory authorities;

(b)our auditors and professional advisors;

(c)law enforcement agencies;

(d)third parties who provide services to us in connection with your account to the extent necessary for the provision of that service;

(e)a third party who is seeking to obtain a reference on your account or persons we believe to be seeking a credit reference in good faith;

(f)your compliance officer (if applicable); or

(g)the purchaser or prospective purchaser of all or part of our business.

24.4You agree that where it is necessary for the provision of the Services to you, we may transfer your information to persons who provide services to us, including where those persons may be outside the EEA and we shall ensure that such persons apply data protection measures equivalent to the measures set out in this clause 24 and imposed upon us by applicable data protection law to protect that personal information.

24.5You acknowledge and agree that third parties may share any of your information with us and other organisations involved in credit referencing, debt recovery, fraud detection and prevention and money laundering detection and prevention and that we in turn may share your information with those organizations. The information we share may affect your ability to obtain credit.

24.6Unless you have advised us to the contrary (either in the on-line application process or subsequently in writing) that you do not wish to receive information from us about carefully selected offers and Products or other useful information, you agree that we may contact you electronically by email, by post or by telephone (at a reasonable hour) for this purpose for the period during which you have an account with us.

24.7If you have been introduced to us by a third party you acknowledge and agree to our exchanging your information with that person to extent necessary for us to fulfil our obligations under any agreement we may have with that person. Such disclosure may result in our sharing financial and personal information, about you including your application details, your account status and your trading activity. Should you no longer wish us to disclose information to such persons please notify us in writing.

24.8If you wish to access information we may hold or wish us to correct any misinformation please notify us in writing. A fee may be charged for providing access to the information. Please note that pursuant to the Data Protection Act 1998 certain information may be exempt from disclosure or we may be unable to disclose information you request.

25Intellectual Property

25.1For the purposes of this Agreement “Intellectual Property Rights” means all patents, rights to inventions, utility models, copyright and related rights, trademarks, service marks, trade, business and domain names, rights in trade dress or get-up, rights in goodwill or to sue for passing off, unfair competition rights, rights in designs, rights in computer software, database right, topography rights, moral rights, rights in confidential information (including know-how and trade secrets) and any other intellectual property rights, in each case whether registered or unregistered and including all applications for and renewals or extensions of such rights, and all similar or equivalent rights or forms of protection in any part of the world.

25.2All Intellectual Property Rights in or arising out of or in connection with the Products, Services, Electronic Services or Website or any other thing supplied by us to you shall, to the extent not owned by a third party, be owned by us.

25.3You acknowledge and agree that, in respect of any third party Intellectual Property Rights in the Products, Services, Electronic Services or Website or any other thing supplied by us to you, your use of any such Intellectual Property Rights is conditional on our obtaining a written license from the relevant licensor on such terms as will entitle us to license such rights to you.

25.4You acknowledge and agree that you must not supply any Electronic Service or our Website (or any part of them) to anyone nor may you copy the Products, Services, Electronic Services or Website.

25.5We may from time to time supply material to you in connection with our Products, Services, Electronic Services or Website. You must not obscure, tamper with or otherwise destroy any copyright or other proprietary notices on any material we supply to you. You must only use any material we supply to you in connection with the operation of your account and upon the closure of your account you must return any such material to us.

25.6Anything we supply to you is supplied on a non-exclusive basis and we reserve the right to cease such supply and terminate your usage of any Product, Service, Electronic Service, Website or any other thing we supply to you.

26Applicable Law and Jurisdiction

26.1This Agreement and will be construed in accordance with the laws of England.

26.2The parties irrevocably submit to the exclusive jurisdiction of the English courts located in London to settle any disputes (including non-contractual disputes or claims) which may arise in connection with this Agreement, save that we may, at our sole discretion (or where required by Applicable Regulations), commence and pursue proceedings in any other jurisdiction and you hereby waive any objection to our so doing on the grounds of venue or forum.

27Assignment

27.1You may not assign or transfer any of your rights or obligations under this Agreement without our prior written consent.

27.2We may assign and transfer all or any of our rights and obligations under this Agreement upon notice to you, without any obligation to obtain consent from you. Any such transfer or assignment shall be subject to the assignee undertaking in writing to be bound by and perform our obligations under this Agreement.

28Authorised Persons

28.1If you wish to authorise a third party (for example, a money manager) to make Orders or place Trades on your behalf (an “Authorised Person”), you may do so provided that you have notified us in writing and we have provided our written consent. We may require you to formalise the appointment of an Authorised Person by executing, as a deed, a power of attorney. We reserve the right to withhold our consent (or, if previously given, revoke our consent on reasonable notice) and shall not be obligated to provide you with reasons.

28.2You will be liable for all acts or omissions on the part of any Authorised Person. We will have no duty to monitor the Trades, Orders or other acts or omissions or to establish the authority of any such Authorised Person.

28.3You will be responsible for any trading apparently carried out on your behalf. We may act on any instructions we believe in good faith are received from an Authorised Person.

28.4The provision of funds by a third party, and their acceptance by us, in respect of trading on your account in no way relieves you of your obligations or affects your liability to us under this Agreement.

28.5For the avoidance of doubt, we may close your open Trades and your account upon notice of your death. Your estate will remain liable for any sums owed to us. We may (but, prior to any grant of representation, are not bound to) act on the instructions of your personal representative(s).

29Rights of Third Parties

The parties do not intend any term of this Agreement to be enforceable pursuant to the Contracts (Rights of Third Parties) Act 1999 except that any Associate or Associated Company of ours is entitled to enforce the terms of this Agreement pursuant to that legislation.

30Severability

If any part of any provision of this Agreement is invalid or unenforceable, then the remainder of such provision and all other provisions of this Agreement will remain valid and enforceable.

31Termination

31.1This Agreement may be terminated:

(a)immediately by us pursuant to clause 20 (Events of Default and Closure of Accounts) or upon thirty (30) days notice to you in writing; or

(b)by you upon giving us thirty (30) days notice in writing

31.2Upon such notice being given, any open Trades will continue until they are closed or expire in accordance with this Agreement. The service of any termination notice will not affect any obligation or liability that may have already arisen in connection with any open Trades or otherwise under this Agreement.

31.3For greater certainty, the following provisions will continue in full force and effect following termination of this Agreement: clauses 19 (Queries, Complaints or Disputes), 21 (Indemnity and Liability), 23 (Communications and Notices), 24 (Data Protection), 25 (Intellectual Property), 26 (Applicable Law and Jurisdiction), 27 (Assignment), 29 (Rights of Third Parties), 30 (Severability) and 32 (Interpretation).

31.4This Agreement has no minimum duration. Since the Trades that you may place are subject to market fluctuations, we are not required to provide you with a cancellation right.

32Interpretation

32.1The headings are included for convenience only and will not affect the interpretation or construction of this Agreement.

32.2Unless the context requires otherwise, any reference to:

(a)a clause, sub-clause, paragraph or term is a reference to a clause, sub-clause, paragraph or term of this Agreement;

(b)a party or the parties, is to a party or to the parties (as the case may be) to this Agreement;

(c)a statute or statutory provision includes any consolidation or re-enactment, modification or replacement of the same, any statute or statutory provision of which it is a consolidation, re-enactment, modification or replacement and any subordinate legislation in force under any of the same from time to time and includes all instruments or orders made under such enactment;

(d)a person includes a firm, corporation and unincorporated associations, trust, government, state or agency of state, or any association or partnership or joint venture (whether or not having a separate legal personality);

(e)a time of day is to the time in London, United Kingdom; and

(f)a document is a reference to that document as varied, supplemented or replaced from time to time.

32.3Any words following the terms including, include, example, in particular or any similar expression shall be construed as illustrative and shall not limit the sense of the words, description, definition, phrase or term preceding those terms.

32.4General words will not be given a restrictive interpretation by reason of this being preceded or followed by words indicating a particular class of acts, matters or things.

32.5Unless the context otherwise requires, words in the singular shall include the plural and in the plural shall include the singular.

32.6The following words and expressions shall have, unless otherwise specified, the following meanings:

Act is defined in clause 2.5.

Act of Insolvency means, in relation to a party:

(a)its making a general assignment for the benefit of, or entering into an arrangement or composition with, creditors; or

(b)its stating in writing that it is unable to pay its debts as they become due; or

(c)its seeking, consenting to or acquiescing to the appointment of any trustee or analogous officer of it or any material part of its property; or

(d)the presentation or filing of a petition in respect of it in any court or before any agency alleging or for the bankruptcy or insolvency of such party (or any analogous proceeding) or seeking any arrangement, composition, readjustment or similar relief under any present or future statute, law or regulation, such petition not having been stayed or dismissed within 30 days of its filing (except in the case of a petition for winding-up or any analogous proceeding in respect of which no such 30 day period shall apply); or

(e)the convening of any meeting of its creditors for the purpose of considering a voluntary arrangement.

Agreement is defined in clause 2.1.

Applicable Regulation means as appropriate: (a) the FSA Rules; (b) rules of a relevant regulatory or other governmental authority; (c) the rules of a relevant Exchange; and (d) all other applicable laws, rules and regulations as in force from time to time, as applicable to this Agreement or the Products and Services .

Associate has the meaning given to it in the FSA Rules.

Associated Company means any holding company or subsidiary company (as defined in the Companies Act 2006) and/or any subsidiary company of any such holding company or its subsidiaries.

Authorised Person means any person authorised to make Orders or place Trades on your behalf under clause 28.

Base Currency means, subject to our agreement, the currency in which you choose to have your account denominated.

Bid Offer Spread means the difference between the price at which a contract can be bought and sold at a point in time.

Business Day means a day (not being a Saturday or Sunday) when banks are open in London for the transaction of general banking business.

Cash Balance means the balance of your account including all debits/credits and the profit/losses from closed Trades.

CFD or Contract for Differences is an agreement to exchange the difference in value of a financial instrument between the time at which the contract is opened and the time at which the contract is closed.

Client Money Rules refers to the rules as set out in chapter 7 of Client Assets (CASS) of the FSA’s Handbook of Rules and Guidance.

Complaints Procedure means our written policy governing complaints regarding any aspect of the Services as published on the Website from time to time.

Conflicts of Interest Policy is available on our Website or by request.

Corporate Action means any event initiated by a which impacts its shareholders. (examples: stock splits, consolidations, mergers and spinoffs).

Disrupted Day is defined in clause 10.2.

Disruption Event is defined in clause 10.1.

EEA means the European Economic Area (namely Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, Iceland, Liechtenstein, Norway and the UK).

Electronic Service means any electronic service, including without limitation, the ETX Capital Platform, Trade-through Charts, direct market access, order routing or information service that we grant you access to or make available to you either directly or through a third party service provider.

Eligible Counterparty means a client categorised as a per se or elective eligible counterparty in accordance with chapter 3.6 of the FSA’s Conduct of Business Sourcebook (COBS).

Event of Default means

(a)an Act of Insolvency occurs in relation to you;

(b)you are an individual and you die or become of unsound mind;

(c)you act in breach of any warranty or representation made under this Agreement;

(d)any representation or warranty made by you under this Agreement and/or any information provided to us in connection with this Agreement is or becomes untrue or misleading;

(e)any amounts due to us is not paid in accordance with this Agreement; and

(f)at any time and for any periods deemed reasonable by us you are not contactable or you do not respond to any notice or correspondence from us.

Exchange means any securities or futures exchange, clearing house, self-regulatory organisation, alternative trading system or multi-lateral trading facility as the context may require.

Expert Advisor or EA means an automated trading system used in conjunction with a trading platform. Expert Advisors are commonly known as trading robots.

Expiration in reference to and option means the date and time at which the option expires and all rights or obligations relating to the option cease.

Expiring Trade means a Trade that expires at a determined point in the future.

Expiry Date means the last date and time that trading in a contract can occur. After this date all open Trades will be closed (settled) by us.

ETX Capital Platform means the trading platform offered by us in effect from time to time but excludes any trading platforms created by MetaQuotes Software Corp .

Financial Spread Bet means a bet on the difference between the opening and closing prices of a contract. The opening and closing price of a contract is determined by reference to the price of the Underlying Market. A Financial Spread Bet is a legally enforceable contract by virtue of section 412 of the Act. Financial Spread Betting is only available to persons resident in the United Kingdom and Northern Ireland.

Force Majeure Event is defined in clause 18.2.

FSA means the Financial Services Authority, the regulator for the UK’s financial services industry, and its agents or any successor body or bodies, which can be contacted at 25 The North Colonnade, Canary Wharf, London E14 5HS or through its website: www.fsa.gov.uk..

FSA Rules means the rules of the FSA as from time to time varied amended or substituted by the FSA and as set out in of the FSA’s Handbook of Rules and Guidance. For further information please visit the FSA website at www.fsa.gov.uk or www.fsa.gov.uk/Pages/handbook/index.shtml

FX means foreign exchange.

FX Dealing Guide is available on our Website or by request.

Guaranteed Stop means a Stop Loss Order that we guarantee will be not be exceeded by market slippage. More information is available on our Website or by request.

Indicator means a technical analysis object imposed onto a chart which is used to forecast the future price movement of the relevant market. Typically there are two types of indicators: trend indicators and oscillators.

Initial Margin Requirement means the minimum sum required to be deposited in order for you to open a Trade.

Intellectual Property Rights has the meaning given to it in clause 25.1.

Intrinsic Value for a call option occurs when the price of the Market is higher than the Strike Price. Conversely a put option has intrinsic value if the Strike Price is higher than the Market price. In both cases the amount of the intrinsic value is calculated by deducting the Strike Price from the Market price.

Joint Account has the meaning given to it in clause 3.7.

Limit Order means an instruction to deal in a particular Market if our price in that Market becomes more favourable to you.

Linked Account has the meaning given to it in clause 3.8.

Liquidation Value means the sum of your Cash Balance and the profits/losses from your open Trades.

Long Trade means a Trade that is made by buying a Market in the hope to profit from any upward price movement.

Loss in respect of any matter, event or circumstance includes all demands, claims, actions, proceedings, damages, payments, trading losses, costs, expenses or other liabilities, and any consequential indirect or special loss, including, but not limited to loss of profits, loss of revenue, loss of anticipated savings and loss of opportunity.

Maintenance Margin means the amount of funds required to maintain an open Trade.

Manifest Error is defined in clause 9.23.

Margin means Initial Margin Requirement and/or Maintenance Margin and is sometimes referred to as ‘variation margin’.

Margin Call means a request or deemed request for funds to bring your Trade Funds Available to zero (0) or above.

Market means a unique set of Products based on the price movement of an Underlying Market.

Market Order means an Order at the price of the current prevailing Market price.

Non-Expiring Trade means a Trade that has no expiry date. These Trades remain open each night with an applicable financing charge applied to your account.

Order means an instruction to open or close a Trade at a price, the same as, or higher or lower than the current Market price and includes: an initial Order, a Limit Order, a Stop Loss Order, Trailing Stop, Guaranteed Stop and a Market Order.

Order Execution Policy means the document that describes the reasonable steps that we will take to ensure that, when executing order, we treat you fairly and obtain the best possible results for you in accordance with the FSA Rules.

Privacy Statement means the privacy statement posted on the Website as amended from time to time.

Product means each type of financial contract we make available under this Agreement (example: our UK 100 Daily Rolling contract is one of our UK100 index contracts within the Market group of UK Indices).

Professional Client means a client categorized as a per se professional client or an elective professional client in accordance with COBS 3.5.1 R.

Relevant Funding Rate means:

(a)in respect of a Long Trade, the reference rate from time to time plus 2.5%; and

(b)in respect of a Short Trade, the reference rate from time to time less 2.5%. Note that where the reference rate is less than 2.5% we will charge you the difference between the reference rate and 2.5% on a Short Trade.

Retail Client means a client categorized as neither a Professional Client nor an Eligible Counterparty Client in accordance with COBS 3.4.1 R.

Risk Warning means the notice we are obliged to give Retail Clients and Professional Clients in relation to the risks associated with the Products and Services provided under this Agreement.

Robotic Trading Tools include, but are not limited to, tools commonly known as Expert Advisors, Scripts and Indicators.

Roll Over is defined in clause 9.38.

Services means the services offered by us to you in respect of CFD trading and Financial Spread Betting as specified on the Website and governed by this Agreement.

Scalping means where a trader attempts to exploit a price discrepancy or anomaly in a market. Price anomalies may be caused by variety of reasons including latent prices (where, due to the complexity of transmitting prices online around the world, a delay in price updating occurs).

Script means a program written which is solely used to perform a single action and then stops once that action has been executed. A script differs from an Expert Advisor, because a script can only be executed on request, where as an Expert Advisor will function on its own accord once activated.

Short Trade means a Trade that is made by selling a Market in the hope to profit from any downward price movement.

Spot Price means the price for a currency for immediate settlement or delivery.

Stop Loss Order means an instruction to deal in a particular Market if our price in that Market becomes less favourable to you. These orders are commonly used to provide some risk protection, but are not guaranteed. Please see the definition of Guaranteed Stop.

Strike Price means the fixed price at which the holder of an option in entitled to buy or sell.

Time Value means the value of the option after deducting any Intrinsic Value from the Market price. This extrinsic premium reflects the probability that the option will move further into the money prior to expiration.

Trade means any transaction entered into under this Agreement (examples: Financial Spread Bets and trades in CFDs or FX). For greater certainty, references herein to ‘trading’ includes ‘betting’ in respect of Financial Spread Bets.

Trade Funds Available means the amount of money in your account that is free to be used for satisfying Margin requirements.

Trailing Stop means a Stop Loss Order where you have elected to have the level of your stop price follow the movement in the price of the Underlying Market.

Underlying Market means the relevant financial instrument, index, currency, or other instrument, whose price or value provides the basis for us to establish the price we quote you for a Market.

Website means the website operated by us for the purpose of providing the Services to you.

ETX Capital – October 2012

No part of this document may be copied or reproduced in any form whatsoever without the express written permission of Monecor (London) Limited. All rights reserved.

↑ Back to top

---

(B)Risk Warning Notice

Monecor (London) Limited, trading as ETX Capital (ETX Capital, we or us), is Authorised and regulated by the Financial Services Authority (FSA) under reference number 124721. The financial products and services offered by us carry a high level of risk which may make them unsuitable for some investors. You should therefore make sure that you understand the risks involved completely before using our products and services.

We do not provide investment advice. If you are unsure if this form of investing suits you, you should seek advice from an authorised financial adviser. We are not currently authorised to give investment advice of any kind and therefore will not provide advice to you. However, from time to time, we may give you factual information in relation to an underlying market or a transaction which you have enquired about.

Only speculate with money you can afford to lose.

This Risk Warning does not form part of your trading agreement with us. This Risk Warning is meant to help you understand the risks involved with the products and services offered by us; however, this Risk Warning cannot explain all risks involved. It can only serve as a general guide to the risks involved with trading our products and using our services, and you must determine for yourself if the risks involved are appropriate for your investment strategy and risk appetite.

Trading in derivative financial products involves high risks. When deciding whether to trade in such instruments you should be aware of the following:

1Trading off-exchange

When you trade with us, you will be entering into an off-exchange (also known as an over-the-counter, or OTC) derivative which is non-transferable. This means you will enter into trades directly with us and those trades must be closed with us. You will not be able to sell or transfer your trades to third parties. This can involve greater risk than investing in a financial instrument which is transferable, or dealing in an exchange-traded derivative, because your ability to open and close trades with us is dependent on our being in a position to accept orders from you and to execute them.

2Margin

You can rapidly lose substantially more on a trade than you have deposited with us to open that trade (the Margin). Any market losses exceeding the Margin will be taken from your account. You may be called upon to deposit additional Margin at short notice to maintain your trade. We will revalue your open trades continuously during each trading day, and any profit or loss will be immediately reflected in your account. A loss may require you immediately to deposit additional funds in your account in order to maintain your open trades. We may also change our Margin rates and/or notional trading requirements at any time, which may also result in a change to the Margin you are required to maintain for a trade. If you do not provide such additional funds (which may be a substantial amount) within the time required (which may be very short, i.e. minutes), your trade may be closed out at a loss and you will be liable for any deficit.

3Loss limits are not guaranteed

Making a stop loss order may limit your loss but this is not guaranteed. Your loss may be greater in some circumstances. Slippage (also called 'gapping') occurs when the market moves past the price at which you have set your stop loss order. This may occur because the particular underlying market has become unusually volatile. For example, the underlying market may have stopped trading at a point above your stop loss order price and after a period of time, may recommence trading at a price below your stop loss order price. In such a circumstance we would close your open trade at or as quickly after the reopening of trading in that underlying market, i.e. at the next price available. Additionally, markets may also be extremely busy when the underlying market becomes volatile and, in accordance with our Order Execution Policy, we will execute orders on a first-in-first-traded basis. This may result in your stop loss order being executed at a price below your stop loss order price in a rapidly falling underlying market.

4Past performance

You should not assume that past performance bears any relation to potential future performance. There can be no certainty concerning the future performance of any underlying market or trades that you make. No representation can be made as to future performance.

5Trading suspension

At times, market conditions and the operation of the rules of certain markets (i.e. suspension of trades due to volatility, lack of liquidity in the underlying, and other reasons) may make trading more risky. This may lead, in extreme cases, to a change of the settlement of a contract. We reserve the right to change settlement for contracts expiring on a given day if, on that day, trading is suspended.

6Leverage and gearing

Leverage or gearing enables you to enter into trades with a comparatively small deposit (also called margin) in terms of the overall contract value. However, this means a relatively small movement in the underlying market can have a disproportionately dramatic effect on your trade.

Even a small movement in the underlying market may result in the loss of your entire margin amount and leave you liable for any other losses sustained on the position. Therefore, it is imperative that you only speculate with money that you can afford to lose.

7Non-UK markets and foreign exchange

Markets outside of the United Kingdom will involve different risks. In some cases, those risks may be greater. The potential for profit or loss from transactions on those markets or in contracts denominated in a currency different from your base currency will be affected by fluctuations in foreign exchange rates. Where you maintain trades or have funds on deposit in your account with us in a currency other than your national/domestic currency, you are exposing yourself to cross-currency risk. It is your responsibility to manage this risk and we shall not liable for any losses that you suffer as a result.

8Contingent liability transactions

Where a trade is margined, we require you to make a series of payments against the purchase price, instead of paying the whole purchase price immediately.

Even if a trade is not margined, it may still carry an obligation to make further payments in certain circumstances over and above any amount paid when you entered into the contract. Contingent liability transactions which are not traded on or under the rules of a recognised or designated investment exchange may expose you to substantially greater risks.

9Spreads, commissions and costs

Before you begin to trade with us, you should obtain details of all commissions and other charges for which you will be liable. If any charges are not expressed in money terms (for example, as a bid offer spread), you should obtain a clear explanation of what such charges are likely to mean in specific money terms. In the case of futures, when commission is charged as a percentage, it will normally be as a percentage of the total contract value, and not simply as a percentage of your initial payment.

Depending on the type of trade you make and how long it lasts we may require you to pay financing costs. Also, if you trade in currencies different than your base currency we may require you to convert those foreign currencies to your base currency. The aggregate of financing costs and foreign exchange costs may exceed any profits on your trade or increase the losses you may suffer on a trade.

10Tax risk

You take the risk that your trades and any related profits may be or become subject to tax. We do not represent or warrant that no tax or stamp duty (other than trading duty) will be payable. You will be responsible for all taxes and stamp duty in respect of your trades. ETX Capital does not provide any tax advice to clients, and you are responsible for your own tax affairs.

11Your money

If you have been categorised as a retail client or we have otherwise agreed to treat you as a professional client, we will hold your money in trust in a segregated client money bank account separate from our money; however, this may not provide complete protection (for example, in the insolvency of our bank). Your attention is also drawn to 'Your Money' section of our Terms and Conditions.

↑ Back to top

---

(C)Order Execution Policy

1Introduction

We, Monecor (London) Limited, trading as ETX Capital, are Authorised and regulated by the Financial Services Authority (FSA). In accordance with the Markets in Financial Instruments Directive (MiFID) and the FSA Handbook of Rules and Guidance we have a duty to treat clients fairly, to conduct our business in an open, honest and professional manner and to act in the best interests of our clients.

We provide financial products and services (examples: trading in contracts for differences and foreign exchange) covering a wide variety of Underlying Markets. This Policy determines the reasonable steps that we will take to provide our retail and professional clients with trading services.

In this Policy:

Bid Offer Spread (also known as Bid-Ask Price) means the difference between the price at which you can sell and the price at which you can buy.

Limit Order means an order to buy or sell a Market when it hits a certain price. This is an instruction to trade at a more favourable price than is currently available.

Market means a unique set of products based on the price movement of an Underlying Market.

Order means an instruction to open or close a Trade in a specific Market.

Trade means an Order that is executed.

Trading Agreement means the agreement that governs your relationship with us with respect to your trading in our products and using our services.

Stop Loss Order means an instruction to deal in a particular Market if our price in that Market becomes less favourable to you. (These Orders are commonly used to provide some risk protection, but are not guaranteed).

Underlying Market means the relevant financial instrument, index, currency pair or other instrument, whose price or value provides the basis for us to establish the price we quote you for a Market.

This Policy does not form part of the contractual terms of the Trading Agreement. In the event of a conflict between this Policy and the terms and conditions of the Trading Agreement, the Trading Agreement shall prevail.

If you require more information or further explanation about any aspect of this Policy, please do not hesitate to contact Client Support at clientservice@etxcapital.com or telephone +44 (0)20 7392 1494.

2order Execution

All your Trades are with ETX Capital as counterparty. Trading parameters as to any minimum and maximum sizes that are accepted and our hours of normal trading, together with other key information (example: margin requirements), are detailed for all Markets on our trading platform or upon request to Client Support.

Our trading systems and procedures ensure that our Market prices reflect, at all times, prevailing Underlying Market conditions and are as competitive as possible. Subject to an Underlying Market being closed or suspended, within normal Market hours we make such prices available for Trades within defined Trade size parameters and outside those parameters as we may determine from time to time (where our clients are so permitted with reference to the terms and conditions).

At our sole discretion we may choose to execute a transaction on our own account in order to hedge any particular or residual Market position accruing as a result of your trading. Even where such a transaction may be related to your particular Trade, at no time will we be acting as your agent or owe you a fiduciary duty in respect of your Trade or our hedge.

In providing you with financial products and services we, as your counterparty, act as a principal only and therefore represent the sole execution venue to which you have access and only at a price set by us. Orders are executed on an 'over the counter' (OTC) basis rather than on an exchange or other regulated market.

If you make an Order larger than a size limit specified by us, or in an illiquid Underlying Market, or with a specific request attached, we will proceed to 'work the Order' on a fully disclosed basis. This is where we will make Trades in our own name in the Underlying Market as a hedge against your prospective Trade. Once we have obtained our hedge we may execute your Order as a single Trade or series of Trades.

3Execution Criteria

In providing trading services, we determine the most advantageous execution for our retail clients and professional clients by taking into account a range of (sometimes competing) factors and criteria. This Policy defines our prioritisation and approach adopted in reflecting those factors and criteria in executing Orders.

3.1Price

We view the relative importance of the price in the execution of an Oder to be of high.

For any given Market we may quote one or two prices: our offer price (the higher one at which you can buy the Market from us) and/or the bid price (the lower price at which you can sell the Market to us).

The calculation of a Market's bid or offer price pays due consideration to the price of the Underlying Market. Where necessary this may then be adjusted to allow for the effect of interest over the period of the Market contract, to take into account any corporate actions and other relevant factors and to include a commission. Prices on our trading platform take into account data from various sources and not directly from one source; they may not match the prices you see elsewhere.

If you choose to make an Order for immediate execution on a bid or offer price shown on our trading platform, execution will be at the latest price as calculated by our pricing system. In some cases this might be more, or less, advantageous than the price originally shown. In volatile Markets, where such an Order has not been rejected for failing our tolerance checks, the divergence in price might be greater. In such cases we view the speed and certainty of execution to be an overriding factor in giving you the most advantageous execution.

We undertake periodic reviews to ensure that the Underlying Market price data we receive represents competitive executable prices.

Some Markets we offer are quoted outside the normal trading hours of the exchange or other regulated market where the Underlying Market is traded. To execute Orders outside such normal trading hours we determine the price at our sole discretion, acting in good faith, and by reference to one or more alternative Underlying Market instruments that are trading, the standing of world market prices at that time and/or to the supply and demand of other clients. At such times our prices may reflect a wider Bid Offer Spread and might be restricted to reduced Trade sizes.

When the Underlying Market is volatile and its price is changing rapidly, we are not able to guarantee that every such price movement will result in a change to the calculated price of the Market. The frequency of updates of our Market price is subject to the technical limitations of computer hardware, software and data and communication links. If you specify a price for an Order (such as with a Stop Loss Order or a Limit Order), where the Underlying Market is moving so rapidly as to 'gap through' the specified price, we will execute the Order for you at the fairest price as possible.

Once a Stop Loss Order price is reached we will attempt to fill your Order at the next price available within a reasonable time. The level at which we fill your Order may be the same, or worse, than the price you specify. Your Order is triggered by our price during our trading hours, not the price of the Underlying Market during its normal trading hours.

We do not guarantee that when we open or close a Trade with you the price will be as good as or better than one you might have obtained elsewhere.

3.2Costs

We view the relative importance of the costs of execution of an Order to be high.

For most Markets, a commission as well as a Bid Offer Spread is charged. This will only be charged on the execution of an Order which opens a new or closes an open Trade.

The Bid Offer Spread that we charge during and outside normal trading hours for Markets is set out in the 'Market Information Sheets' available on our website or by request. Additional charges or spreads may be charged where this is negotiated with you in advance.

3.3Total Consideration

We view the relative importance of total consideration in the execution of an Order to be high.

In determining the various priorities and weights of all the different factors and criteria that we will take into account in the execution of Orders for clients, we will usually attach the highest relative importance to total consideration. This will usually comprise the price and costs related to execution, although in some circumstances we may determine that other execution factors (in particular: speed and certainty of execution) are more important than price and/or cost in obtaining the best overall outcome for you.

3.4Size of Orders

We view the relative importance of the size of Orders in the execution of an Order to be high in circumstances where it might influence the choice of our hedging execution venue, and the overall price of execution might inevitably be affected at the expense of achieving the requested size.

Execution will not generally be affected by Trade sizes where the Order is within any pre-defined minimum and maximum limits. Such Orders will be executed automatically by our trading platform. Larger maximum size restrictions will generally apply to Orders executed by telephone where we have agreed to provide you with this service.

Where your Order size is greater than our predefined limit, it will become an important factor in the execution of your Order. With the exception of foreign exchange products, if your Order is of a particularly large size we may work the Order in tranches in order to be able to achieve complete execution and to do so for the most advantageous price outcome. Such orders will usually be executed in tranches up to or equal to the normal Market size. In such circumstances, the price may vary between tranches. Depending on our arrangement with you those individual tranches may be passed on to you as obtained, or be converted into a single Trade at the aggregate average price.

Where execution of a client Order requires us to work our hedge in tranches in the Underlying Markets, this is done by placing our Orders in the particular execution venue on a first-in-first-filled basis (i.e. in the same sequence we receive your and other client Orders), unless the particular specifics of an Order or the market conditions mean that this is either impractical to do so or risks a potential negative impact.

For foreign exchange products we will generally not work large Orders in tranches and will deal with such Orders on 'fill or cancel' basis.

Whilst your Stop Loss Order, Limit Order or opening Order may be of a size that might be executed automatically within normal trading hours, it might exceed the maximum size limit when out of normal trading hours. In such circumstances, execution may be carried out in tranches where the price may vary considerably for each tranche.

3.5Speed of Execution

We view the relative importance of the speed of execution of an Order to be high.

Should Market circumstances result in unusually high demand, then automatic Market pricing might be temporarily superseded wholly or in part by manual pricing and execution. During such times this might cause delays in speed of execution which itself may impact on the price at which Orders are executed. We have procedures in place to minimise the risk and impact of such delays.

3.6Likelihood of Execution

We view relative importance of the likelihood of execution and the minimisation of uncertainty to be of high.

When executing through our trading platform, we provide you with screens showing continuously updating prices for Markets offered and, subject to trading times and trading size limits, you have the ability to trade immediately and with a very high degree of certainty.

In order to increase the likelihood of execution for larger Orders and Orders of clients trading by telephone, we ensure that we have the necessary access to trading venues and third-party market makers likely to have the required liquidity to enable us to hedge prior to executing the Order.

3.7Nature of the Order

The type of Order, including whether it is a Stop Loss Order, Limit Order or opening Order, can be an important factor in relation to execution where this might determine whether the Order is priced and executed manually rather than automatically.

3.8Market Circumstances

In certain circumstances, the nature of the Market traded (particularly when involving equities) may become an important determinant in the execution of the Order. Where circumstances relating to an Underlying Market might affect the future price and the value of the Order going forward, we will take reasonable efforts to achieve a fair execution for you.

3.9Specific Instructions

If you give us specific Order instructions, those instructions will take priority over other determinants as set out in this Policy. Where such instructions are not comprehensive we will revert to this Policy as and when necessary. However, in general, we will still exercise our judgement in balancing the various factors in order to obtain the most advantageous outcome for you on a consistent basis.

Where execution under your specific instructions results in us having to use a different process than that specified in this Policy, we may have to pass the direct costs incurred on to you in accordance with the terms of your Trading Agreement.

4Aggregation of Orders

4.1Client Orders

We may sometimes combine two or more Orders from different clients in order to execute a single transaction. This will be where we believe reasonably that it is in your overall best interest and is unlikely overall to be to your disadvantage.

4.2Aggregation of Client Orders with our own Orders

Where our risk requirements dictate that we must execute an Order in an Underlying Market related to the Market of a client's Order and we receive more than one client Order for that Market, then we will execute the Orders on a first-in-time basis, unless the client Orders can be combined to obtain a better execution outcome for our clients.

5Fiduciary Duty

Although we aim to operate in accordance with this Policy, this Policy does not create any legal obligation or duty, fiduciary or otherwise, over and above our duties to you under the Trading Agreement or any regulatory obligations placed on us by the FSA.

6Monitoring and Review of this Policy

We will, on a regular basis, monitor our operations in relation to this Policy. A periodic review will be made of the execution venues and data sources we rely upon to provide pricing information. Where we identify the need to make any material change to either this Policy or to our Order execution arrangements, such changes will be fully disclosed to you.

↑ Back to top